TAKING INTO ACCOUNT THAT THESE COMPANIES HAVE A DIFFERENT ADVERTISING STRATEGY,

MAKE A COMPARATIVE ASSESSMENT OF THE FINANCIAL SITUATION.

INDICATOR ZARA MANGO

Sales 2017 and 2018 3% 1.8%
Earnings 2017 and 2018 2.3% -23%
Dividend 2017-2018 60%
Online sales 2017-2018 27% and 12% (of total sales) 35%
International presence 106 countries 110 physical and 80 online
Stores 7490
Investment projection 1.6 billion euros 75 million euros

Analyzing this comparison of some of the most influential companies in fashion, we

observe figures that are striking as a financial analyst. According to an article published by
the newspaper El País de España, both companies represent a wave of changes at a
technological and digital level, where they are precursors of the industry 4.0 which moves
a large number of sales, these companies bet with very innovative marketing strategies
which each one has been creating a digital niche that make their managers are optimistic
about the projection, in fact each of these companies want to be winners of leads as many
as possible in order to achieve a digital positioning that increasingly increase their sales.
This requires a very high investment, and with the help of investment banking it is possible
to obtain these resources to achieve these action plans.

From the above, it is worth asking how MANGO's losses, which have been consecutive
since 2016, affect the competition with ZARA? We can answer this question taking into
account the financial indicator of GROSS MARGIN which for MANGO in 2018, is 58.5%
allows us to interpret that MANGO controls production costs despite having investment in
technology and digitization this in turn speaks of the business model in search of having
economy of scale, which allow to operate with all possible marketing strategies in order to
increase this MARGIN up to 60% which would be very competent. For MANGO, it is now
vital to strengthen what has already been successful, which is ONLINE sales.

In contrast, ZARA stores continue with its expansion plan with a marketing strategy based
on sales, presence in networks, location in the best places and technological investment,
representing internet sales for 2018 of 12% of total sales, this conglomerate and European
fashion leader has stable financial figures given that its financial strategies and the
presence of shares that are listed on the Spanish stock exchange, allows it to demonstrate
that its investments have been profitable for its partners.This conglomerate and European
fashion leader has stable financial figures given that its financial strategies and the
presence of having shares that are listed on the Spanish stock exchange, allows it to
demonstrate that its investments have been profitable for its partners.
In conclusion, the two companies lead and have different financial figures for 2018 in
terms of market share, we can also reflect that the fact of having an increase in sales does
not mean that things are good, this can affect profits and this in turn will keep you away
from good investors. In the medium term, companies should seek to reduce debt and
increase EBITDA, and changes in the management team can also improve the
performance of these organizations, as in the case of MANGO.